Gadkari said the government is keen to run vehicles on low-carbon-emitting indigenous fuels which will help reduce dependence on fuel import and also keep emissions on check.MUMBAI: Road transport minister Nitin Gadkari said the government has asked automakers to develop vehicles that run on alternative fuels and fuel companies to develop bio-fuels, but doesn't intend to shut their business even as India pushes the pedal to the metal on its electric vehicle ambitions.

The minister earlier this month urged the industry to give up making petrol and diesel cars for vehicles that run on electricity and alternative energy.

Speaking at a Society of Indian Automobile Manufacturers event, he had threatened to “bulldoze” his way into implementing the plan to transition India to all-electric mobility.

He though appeared to be softening the stand while addressing members of the Federation of Indian Chambers of Commerce and Industry here on Monday.

“We don't want to close any petrol or diesel vehicle company, but we need to save the country from pollution and promote safe indigenous technology. That is why we are asking them to develop alternate fuel-based vehicles,” Gadkari said.

Indian automakers are feeling the pressure of the government’s plans to have only electric vehicles for sale from 2030, as they feel that it does not give them enough time to develop a strategy for the shift in business and produce new models to fit the requirement.

The industry has also cited the high cost of lithium-ion batteries as one of the major challenges. But the minister said the prices were coming down.

“From the time I started talking about the electric vehicles, price of lithium battery has reduced by 40%. Once the industry starts producing electric vehicles, the scale will further reduce price,” the minister said.

Gadkari said a cabinet note on electric vehicles, which covers the issue of charging stations, is ready and will be cleared once he returned to Delhi.

Ministers have repeatedly said that they will ensure an all-electric car fleet in the country by 2030. Globally, countries and carmakers are using hybrid vehicle as the bridge to arrive at the final vision of electrification, but Prime Minister Narendra Modi’s government has an ambitious plan to leapfrog to complete electrification.

Gadkari said the government is keen to run vehicles on low-carbon-emitting indigenous fuels which will help reduce dependence on fuel import and also keep emissions on check.

The biggest challenge to move to electric mobility is the price of electric vehicle, which continues to be high due to expensive batteries.

Also, infrastructure to support the vehicles is almost non-existent. Apart from Mahindra & Mahindra, which sells electric vehicles in the market, Maruti Suzuki, Tata Motors and some international players are eyeing the clean energy personal transportation space in India.

There is vigorous activity at car makers to improve the affordability of such products so that they will be ready to participate in the market once it is opened up.

In fact, segment leaders like Maruti Suzuki, Tata Motors and Hero MotoCorp have reported de-growth of 34.3 per cent, 45 per cent and 20 per cent, respectively giving a clear indication of a prolonged slowdown in the sector.